Bourses to discontinue trading in Cairn from Apr 26

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PTI

April 14, 2017

UPDATED: April 14, 2017 17:45 IST

Mumbai, Apr 14 (PTI) Top stock exchanges NSE and BSE will discontinue equity as well as equity derivative trading in the security of Cairn India from April 26, as the cash-rich oil producer has merged into its debt-ridden parent Vedanta. Under the merger deal, shareholders of Cairn India will get one equity share of Vedanta and four redeemable preference shares of face value Rs 10 and coupon 7.5 per cent. Further, Cairn India shareholders, as on record date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs 17.70 per equity share. April 27 has been set as record date for the share swap. Accordingly, in two separate notices, NSE and BSE have asked the investors and brokers not to deal in the equity shares of Cairn India with effect from April 26. "...it is hereby notified that the following security will be suspended from trading with effect from April 26, 2017," NSE said in the circular. BSE in its circular said: "Trading Members are advised not to deal in the equity shares of Cairn India Ltd with effect from the under mentioned date (April 26)". At the same time, the bourses in separate circulars said "no futures and options contracts will be available in the underlying CAIRN for trading from April 26, 2017 onwards". Moreover, the bourses said the existing equity derivative contracts of Cairn "with expiry dates April 27, 2017, May 25, 2017 and June 29, 2017 will expire on April 25, 2017". Earlier this week, Cairn and Vedanta had announced the completion of the merger. The merger would help the metals and mining company Vedanta access to the cash of Cairn India, helping it cut debt. PTI SSM DK PTP

This is unedited, unformatted feed from the Press Trust of India wire.

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